BIDV signs a major credit agreement providing loans to fishermen for off-shore steel ship building

Marking the first of a raft of loan agreements for the fishermen of Binh Dinh, four credit agreements were signed totaling VND61 billion (USD 3 million) on 3 February 2015. BIDV Binh Dinh branch signed credit agreements with three customers in Hai Cang ward, Quy Nhon city to build new steel ships, each costing VND18 billion (USD 0.9 million). BIDV offered a loan to value ratio up to 95%. Moreover, BIDV Phu Tai loaned VND 9.7 billion (USD 0.4 million) for a steel ship valued at VND11.475 billion (USD 0.54 million)

​The loan tenor is up to 11 years with collateral being the assets formed from the loans. The interest rate for the first year is 7%/p.a., with a subsidy available from the State budget. If eligible for the subsidy, borrowers only have to pay a stable interest rate at 1%/p.a. during the loan tenor. Customers will be entitled to interest exemption and a principal grace period in the first year. It is expected that these ships will be completed by July 2015.

Further, BIDV also introduced the fishermen to good shipbuilding facilities which offer affordable prices, but high quality. Once the ships are put into operation, BIDV will support the fishermen by connecting them to seafood purchasing and processing agents to ensure sustainable revenue. This policy shows the support under the end-to-end value chain of BIDV.

Along with loans for shipbuilding, BIDV is also considering granting working loans to customers to ensure stable production and business activities in line with the Decree 67 on fisheries development policies.

On behalf of the borrowing fishermen, Vo Thanh Duy, a shipowner in Tam Quan, Hoai Nhon district, Binh Dinh province said the signing of credit agreement helps put Decree 67 into action and is a good sign that motivates and energizes fishermen.

Speaking at the signing ceremony, Le Trung Thanh, Deputy General Director of BIDV,  said: “ Following Decree 67, BIDV has worked with local departments and authorities to exchange information to quickly remove obstacles and best support fishermen. Further to this, BIDV branches also approach ship-owners to guide them through loan documents and procedures, ensuring simplicity and transparency.”

At the signing ceremony, BIDV gave 7,083 Tet gifts worth USD100,000 to the poor people in Binh Dinh Province, 70% of the gifts were paid for by BIDV’s welfare funds and branch staff, plus contributions by businesses and organizations. The gifts will all be dispersed to the poor people in Binh Dinh province by 09 February 2015.